This study will examine the process, policy issues, and outcomes of an intensive psychosocial rehabilitation program, the Community Transition Program of the Lincoln Regional Center. Specifically, this study will: 1) investigate the clinical outcome of an inpatient intensive psychiatric rehabilitation program, in terms of patients' clinical functioning (symptom and related aspects of SDMI), personal and social functioning (performance of activities of daily living, interpersonal and occupational functioning), and quality of life; 2) analyze individual treatment plans to determine the relationship between dimensions of patient functioning, clinician perceptions and judgments about problem areas and treatment goals, and clinical outcome; 3) construct stochastic models, using demographic, cognitive and behavioral data, to predict ultimate success at sequential points in the rehabilitation process; 4) analyze cost-effectiveness of the program by comparing the cost of rehabilitation to its fiscal benefits, lower costs of continuing care and lower rehospitalization rates; and, 5) translate the results of these analyses into practical policy guidelines that indicate who should receive intensive rehabilitation, how long it should last, and when rehabilitative efforts should be abandoned for less costly alternatives. Successful completion of this project will constitute a demonstration of the feasibility and usefulness of its analytic approach, for the "real world" decisions that mental health policy-makers and administrators must make. Demonstrated usefulness will lead to more common application, and this will ultimately result in better, more cost-effective services at the local level.